OK, so I want to sell some of my Mutual Funds in order to invest that money in stocks. I know that the Funds must pay out the capital gains before the end of the year to holders of the funds. I am in the 15% tax bracket, and don't expect these gains to push me up into a higher bracket, (but it is possible). If I sell the funds before the end of the year, to avoid the Cap gains pay out, aren't I going to have to pay the same taxes on them anyway because I will have sold the Funds and realized LT cap gains from the sale? Based on this concern, is ther any advantage in selling the Funds before year end?